Last minute AMT question

[outtarentals]

I sold a house this year (2007) and it's very likely I'll have to pay AMT. I've been paying hefty estimated taxes in anticipation of this and had a sudden thought today. Should I prepay my last 2007 installment tomorrow - Dec 31, 2007 - (due Jan 15, 2008 or leave it till after the 1st and deduct it next year when I won't be paying AMT? I heard that Ca state taxes are not deductable when you are in AMT territory so they'd be wasted if I paid them this year.
Thnx in advance and Happy New Year!!! Outta

 

[Martha]

The only way to know for sure is to run a sample set of numbers, but my gut feeling is not to prepay the estimates.

 

[outtarentals]

Mine too - thanks, Martha - you're a pal! Outta

 

[Martha]

For anyone else that is doing the LAST minute AMT planning, look at the AMT FAQ on this board http://www.early-retirement.org/forums/f47/martha-s-guide-alternative-minimum-tax-amt-30653.html and also look at the Fairmark site which has a nice article on the top 10 things that cause AMT liability:
Top Ten Things That Cause AMT Liability

Careful when bunching deductions in one year. The FAQ has a couple of threads on that issue.